NATIONAL GAS

Projects

A 20-year Concession agreement has been signed on 6/1/1999 between National Gas and the Egyptian General Petroleum Corporation (EGPC), for the financing, design, construction, operation and maintenance of natural gas distribution networks in the areas of Eastern Delta (Sharkeya Governorate), to serve residential, commercial and industrial clients and power plants, inclusive of marketing the natural gas and billing the customers for the gas consumed.

All stages of gas distribution are covered by the project, from the national network up to the kitchen appliance of the final user, through the transmission lines, the pressure reducing equipment, the local medium and low pressure distribution networks in the cities, the external installations of the buildings, the internal installation in Client’s apartment, to the connection of appliances.

The project also covers the stage after the client is connected. Responsible for the billing and collection cycle as well as provides after sales services to connected clients. National gas also ensures that the natural gas distribution network is operating safely and continuously, that is done by the proper maintenance systems in place.

The implementation of the agreement is divided into 4 project phases, aimed at progressively covering the areas of the concession up to an expected total of over 700,000 residential and commercial clients, as well as, nine industrial zones.

Starting from the connection to the national network near the city of 10th of Ramadan, through the construction of a transmission pipeline, the project will progressively cover all the areas of the concession, with a construction program divided into different phases

Phase 1: The cities of Belbies and Abu Hammad

After only one year of signing the contract with EGPC, National Gas delivered natural gas to the first home in Belbies city on the 31st of December 2000. This is considered the first flame in Sharkiya Governorate. Phase 1 aimed at 48,000 potential clients in the cities of Belbeis and Abu Hammad, with an investment of 163 millions L.E.

Works started in 1999, went to full rate in year 2000, with the completion of the 27 km steel transmission pipeline at high pressure (70 bar), joining the national gas grid operated by GASCO Co. to the main Pressure Reduction Station (PRS) in Belbeis. The PRS (capacity of 20,000 m3/hr, pressure step down 70 to 7 bars) was completed and commissioned in December
2000, while the Polyethylene medium pressure (7-4 bar) and low pressure (100m bar) network was developed in the city of Belbeis.

During year 2001, while construction works continued steadily in Belbeis City, the steel transmission pipeline (22 km at 7 bar) from Belbeis to Abu Hammad was completed and connected to the new axial regulator (5,000 m3/hr capacity) at the entrance of the city. The polyethylene medium/low pressure distribution network was developed in Abu Hammad and the first group of 35 clients connected to the service within the end of the year Works for Phase 1 proceeded intensively in year 2002, with the extension of the distribution network and the client installations to the various sectors of the two cities. Overall progress was at 85% at the end of 2002, with a total of 32,700 residential cities connected to the service, as well as 66 industrial/commercial clients.

Phase (2): The city of 10th of Ramadan

On April 29th, 2001 the Amendmentn.1 to the Concession Agreement was signed with EGPC, starting Phase 2 of the Project, to develop the gas distribution network in the area of 10th of Ramadan City, for an estimated potential of 57,000 residential clients in the industrial areas B3, B4, C1, with and investment over 180 millions L.E.

Construction works started in 2001 with initial focus on developing the network to industrial area B4, in the eastern part of the city. A connection was made at the off take point with the existing medium pressure network operated by GASCO in the southern part of 10th of Ramadan. A 2.5 km steel pipeline (7bar, 10″+6″ in diameter) was constructed from the off-take border of area B4, where a 5,000 m³/hour regulator (7 to 4 bar) was installed. The polyethylene network, for a total of 6,500 m, was constructed, tested and commissioned to serve the clients of area B4. 12 industrial clients in this area were connected before the end of 2001.

Further in 2002 and 2003, a main Pressure Reduction Station of total capacity of 100,000 MC/H was commissioned to feed Industrial, commercial and residential clients in the city of 10th of Ramadan. For the residential supply of natural gas, a separate Pressure Reduction and Odorant Station with a total capacity of 20,000 MC/H was commissioned. All the planned distribution network and transmission pipeline was completed timely ensuring delivery of the natural gas supply to the clients. By the 30th of June 2005, the project was completed, servicing at the time more than 30 industrial clients and 40,000 residential clients.

Phase (3): The city of Zagazig

The Amendment n.2 to the Concession Agreement was finally signed end of March, 2004.
This allowed us to enter Phase 3 of the Project in the area of Zagazig, the Capital city of Sharkeya Governorate. The project objectives was to connect of 60,000 residential clients and 20 industrial clients in the area, and construct a 10 km high pressure transmission pipeline (70 bar, 10′ diameter) from the national grid, the main Pressure Reduction Station in Zagazig (70 to 7 bar, 50,000 m3/hr), a medium pressure (7 bar) Carbon Steel grid with a length of 10 km and various diameters, the polyethylene medium and low pressure network for a total of about 270,000 m including several step-down axial flow regulators distributed in the network.

In March 2009, the project was successfully completed. The team delivered more than the targeted 60, 000 residential clients and 20 industrial clients.

Phase (4): Fakous, Abu Kbeer, Hehia, Kafr Sakr, Meniael Amh

A detailed feasibility study has been prepared to connect the rest of Sharkiya cities to the natural gas supply. This final phase targets more than 250,000 residential clients, as well as, 2,500 commercial and industrial clients. According to the targeted number of clients, more than 100 Km of transmission lines (pressure 70 to 7 bars) shall be constructed, together with more than one million meters of medium and low pressure polyethylene network shall be installed. This also means that 2 Pressure Reduction Stations shall be commissioned.

Operation & Maintenance

Upon completion of the construction works in Phase 1, the Operation & Maintenance team was activated. The main objective of the team is to ensure continuous, smooth operation of gas supply to clients. This is done through several processes.

The Customer Support Service of O&M operates in close coordination with the Client Service Centers to execute the works that may be needed on client installations, either for new clients who request to be connected to gas service, or for modifications to existing installations, like changes in pipe routing, addition of appliances and disconnections.

The gas supply service has been provided smoothly and without inconveniences in the areas of Belbeis, Abu Hammad, 10th of Ramadan and Zagazig since 2000(not including force majeures).

Regular preventive maintenance activities are implemented by O&M for all equipment and networks, such to safeguard integrity of equipment and efficiency of operation.

Training of technical staff is provided to enhance professional capabilities. A program of drills is implemented regularly, including the simulation of a variety of abnormal events, in order to keep preparedness to a high level and improve performance in the real cases.

The emergency service ensures prompt response to customer calls on a 24-hours basis, providing interventions of emergency teams to fix all kind of problems (mostly small leaks of gas). Particular care is dedicated to the organization of this service and to the training and motivation of its staff, to keep the response to the maximum effectiveness.

Billing and Collection

Billing for natural gas consumption starts after the client has been connected to the service. Residential clients are billed monthly according to the agreement with EGPC, whilst Commercial & Industrial clients are billed twice a month; every 15 days. This is done via a trained collection team. This team visits all clients to check, their meter reading and thus identifying their consumption periodically. During the same visit the client is billed for the previous period.